IRS Audit Warnings That Create Enrolled Agent Job Opportunities

Tax professionals looking for ways to utilize their high level of expertise possessed from passing the enrolled agent exam should promote themselves to taxpayers most likely to encounter an IRS audit. The amount of money collected per audit has steadily increased in the past decade. Very few audit victims escape owing the IRS because of the sophisticated computer selection process.

A wise EA identifies these prospective audit candidates, conveys their vulnerability, and demonstrates that the best path for eliminating damage is accurate tax return preparation. These individuals are often found among taxpayers in specific situations. One example is people who have been audited by the IRS in the past. They are much more likely to encounter a future audit.

Taxpayers facing a current audit are particularly in need of EA solutions. Several steps are advisable. First, anyone undergoing an IRS audit should delay filing the current year tax return. An audit for a prior year can impact the return this year. Audited taxpayers should pay any taxes owed by April 15 and extend the due date of their returns. Fortunately, enrolled agent study prepares a tax professional for calculating an estimated tax balance owed and correctly filing the extension form.

Secondly, audited taxpayers frequently become impatient and therefore benefit when represented by someone from the enrolled agent program. IRS auditors may take up to 28 months from the filing date of the tax return under examination. This allows 8 months for any audit appeal and still remains within the 36-month legal limit. Once that deadline passes, the IRS can no longer pursue the particular tax return - in the absence of a fraud allegation. So, the patience of audited taxpayers is for their own benefit.

Individuals often worry about how to respond to IRS officers. When allowing an enrolled agent to correspond with the IRS, the taxpayer has less to fret about. Taxpayers should also remember that IRS employees cannot enter a person's home without permission. IRS meetings are best arranged with the EA representative.

Particularly common audit troubles arise regarding tax debt of a spouse incurred prior to the marriage. Individuals in this situation are enrolled agent job opportunities because the property and wages of both the husband and wife are at risk in an IRS seizure for one spouse's tax bill. Assets acquired during marriage are generally considered joint property. The IRS can pursue joint assets to cover the tax liability of one spouse.

A professional with enrolled agent training is far superior for dealing with the IRS than some of the tricks that people imagine are possible to relieve a tax debt. For instance, spouses cannot use gifts among themselves for the purpose of evading IRS liens. Another predicament of significance involves commingled property. Not only are joint bank accounts subject to levy, but also the IRS can seize the entire balance - even if most of the money is wages of the spouse without the tax problem.

IRS Circular 230 Disclosure

Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.

Fast Forward Academy is a leading publisher of education for enrolled agent exam and tax professionals. Access to free questions for the EA solutions is available on their website.